CherCo receives $55 million financing from WhiteHawk

By Keefe Borden27 September 2022

Cherco has a wide ranging fleet covering any application. (Photo: CherCo.)

WhiteHawk Capital Partners has injected $55 million into compression services provider CherCo, financing which enable expansion in the U.S. Southwest, the companies announced. Terms of the arrangement were not made public.

“WhiteHawk has proven to be an invaluable business and financial partner that clearly understands our infrastructure business and the unique industry opportunity the company now seeks to capitalize upon. In recognition of the confidence it sees in CherCo and its management team, WhiteHawk provided CherCo a $55 million credit facility to fund its expansion plans,” said Chet Erwin, CEO of CherCo. “With this new alliance, we are well-capitalized and positioned to take advantage of future growth opportunities.

CherCo has the capacity to provide a wide range of horsepower — from 50 to 1,775 — and aftermarket services as required by its customers.

“CherCo will have a safety driven culture with the highest standards of safety, a devotion to sustainability, and deliver unparalleled customer service,” added Erwin. “Our plan is very basic – good people, quality equipment and a focus on giving “Best in Class” customer service. We focus on our employees so they can focus on our customers.”

Erwin has more than 35 years of experience starting and expanding successful companies in the energy sector. He co-founded Hanover Compression Company, which started as a four-person Texas operation in 1990 and grew to more than 5,000 employees worldwide by 2001. In 2004, he co-founded Valerus Compression Services, which grew its revenues in five years to become the second-largest gas-handling company worldwide.

“The partnership with WhiteHawk and our investors has positioned CherCo with strong financial backing to grow and transact during this exciting time in our industry,” said Braden Norris, Chief Financial Officer of CherCo.

“With the financing and multiple acquisitions, CherCo is well positioned and has some of the best growth prospects in the industry,” said Steven Sadek of Armory Securities, who led the financing for CherCo.

As an organization, CherCo’s goal is to provide innovative ESG solutions to both upstream and midstream clients, as well as aftermarket services.

In addition to compression equipment, CherCo offers service guarantees mechanical availability and timely, unparalleled service from some of the top mechanics in the industry. Comprised of the latest-model Caterpillar and Waukesha engines with Ariel and GE compressors, CherCo’s fleet of equipment is suited for gas lift and gas sales in addition to midstream gathering, gas processing and treating. The firm’s warehouses and operating locations are strategically located to provide customers fast response times. CherCo technicians are dedicated to its customers’ aftermarket service needs. state-of-the-art training and parts distribution throughout the company’s operating footprint.

WhiteHawk Capital Partners is a private credit investment manager focused on asset-based financing solutions primarily to middle-market private and public companies across a variety of industries.

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